Hargreaves Lansdown PLC (LSE:HL.) is in “troubled waters” according to analysts at Jefferies, which set a target price of 800p on the stock with a ‘hold’ rating.
In a note to clients, the Jefferies' analysts pointed out that in August the financial services company faced an “insurmountable demographic hurdle whose peak effects we expected to appear in FY23”.
In the first quarter, the analysts said there were no net inflows into Hargreaves’ platform except in Active Savings, which “must be due in part to inflation and uncertainty, but which we think is also a symptom of customer demography.”
However, the Jefferies' analysts believe that rising interest rates “provide a paddle.”